Top stories in the Russian press on Tuesday (TASS)

Nezavisimaya Gazeta: Tokyo talks peace with Russia, yet builds up military might

Japanese Prime Minister Shinzo Abe wants to expand ties with China given Washington’s aggressive trade policy. At the same time, Tokyo is worried about China’s military power and its claims to some disputed islands. According to Nezavisimaya Gazeta, on Monday, in parliament, Prime Minister Abe promised to continue negotiations on a peace deal with Russia. However, at the same time, Japan is increasing its defense budget, strengthening its fleet, and improving its means of ensuring cybersecurity and space control, the newspaper wrote.

Head of the Center for Japanese Studies at the Institute of Far Eastern Studies of the Russian Academy of Sciences Valery Kistanov told the newspaper that Abe understands that the goal of enhancing Japan’s international role could not be tackled without building relations with Beijing. The fact that both China and Japan were accused by Trump of unfair trade practices, only brought the countries closer, he added.

Talking about Russia, Abe reiterated that he and Russian President Vladimir Putin would demonstrate solid willpower to solve the peace treaty problem themselves and not to leave it to future generations. At the same time, nothing was said about the progress at the meeting with Putin on January 22, the expert concluded.

Trying to move past historical differences with its largest neighbors, Russia and China, Abe is also pursuing the modernization of Japan's self-defense forces and is seeking to equip them with the latest anti-missile defense equipment purchased from the United States. According to the newspaper, its military budget for this year has become the largest in its post-war history, totaling $47 bln.

Meanwhile, a particularly important role was given to the coast guard. Its ships, according to the premier, are designed to protect not only the numerous small Japanese islands, but also to ensure the safety of navigation in the vast Indo-Pacific region, Nezavisimaya Gazeta wrote. That said, it's budget is growing annually. Similarly, according to the newspaper, Tokyo concluded seafaring agreements with Southeast Asian states and India to contain China’s sea expansion.

Vedomosti: Germany shields Nord Stream 2 from European Commission

EU states have submitted their feedback to the third revision of amendments to the Gas Directive (2009/73/EC), Vedomosti wrote citing a European official and a person close to a European energy company. According to the newspaper, Germany does not object to regulating infrastructure connecting the EU with third countries, but is not ready to accept the current version of the bill.

The European Commission believes that the amendments to the Gas Directive should extend the key principles of regulating the European gas market to offshore gas pipelines. The EC seeks separate functions for a transit operator and supplier, and a green light for third parties to supply through the pipeline; in general, it wants to foster competition.

The third revision to the amendments includes a paragraph empowering the European Commission to control intergovernmental agreements on gas transportation, formulate basic requirements for negotiations and even block them.

For Germany, it is crucial to defend Nord Stream 2, Corporations Department Director at Fitch Dmitry Marinchenko told Vedomosti. "Both for access to cheap Russian gas and for geopolitical prestige it’s a demonstration of independence from the United States. Berlin is likely to fight tooth and nail against the adoption of amendments that could put Nord Stream 2 at risk," the expert noted.

According to Marinchenko, the position of the Netherlands is even more interesting. "The country has uneasy relations with Russia, and it is the largest gas producer in the EU, yet it practically finds itself in the same camp with project supporters. Perhaps, the Dutch understand that their production will decline and Europe will need more flexibility in gas purchases," the expert told Vedomosti.

Nezavisimaya Gazeta: Maduro will have to start dialogue with opposition

The leader of the Venezuelan opposition Juan Guaido, who proclaimed himself the interim president of the Bolivarian Republic, called on Venezuelans to go out and conduct more protests against the government of Nicolas Maduro. In turn, Maduro demanded that the armed forces take his side, promising them amnesty. Experts interviewed by Nezavisimaya Gazeta believe that the crisis can be resolved only through negotiations between the authorities and the opposition. Russia is ready to assist Caracas in this endeavor.

Dmitry Rosental, a scholar at the Institute of Latin American Studies of the Russian Academy of Sciences told the newspaper that he considered Moscow’s readiness to help find a solution to the political crisis in Venezuela a sound proposal, pointing out Moscow’s desire to protect its interests in the Latin American country. However, he was skeptical about the success of negotiations between Maduro and his political opponents. "Negotiations are necessary. Russia, like the United States, is not interested in further destabilizing the situation in Venezuela, but I don’t believe that these talks will be successful even with the mediation of countries such as Russia," Rosental explained.

According to German political scientist, and Scientific Director of the German-Russian Forum Alexander Rahr, as far as Venezuela is concerned, the West acts according to the standard scheme, invented during the Yugoslav wars. Taking a position on Venezuela, the EU does not follow any strategy, but is guided by the policy of values - whether the "dictator" violates human rights or not. This arrangement has been tested many times and in many countries, but in Syria it failed to pan out, he added.

Senior Researcher at the Institute of Latin American Studies of the Russian Academy of Sciences Emil Dabagyan believes that dialogue between the authorities and the opposition is the way to iron out the Venezuelan crisis. Furthermore, he believes Washington will not send troops to Venezuela.

Vedomosti: US Treasury lifting sanctions from En+ could be test

Overnight to January 28, the Office of Foreign Assets Control (OFAC) of the US Treasury announced that it was lifting sanctions against En+ and the second-largest aluminum producer Rusal and the owner of large Siberian hydropower stations Eurosibenergo. En+ has already announced a new board of directors, Vedomosti wrote. Seven Russians stepped down to be replaced with seven independent directors, whose candidacies were agreed on with OFAC.

Deripaska's stake in En+ has already dropped from 70% to 44.95%, while the share of VTB increased from 7.65 to 22.27%. Swiss trader Glencore will receive another 10.55% sometime during the year in exchange for 8.75% in Rusal. According to Vedomosti, Deripaska has not nominated his candidates to the board of directors yet. A representative of En+ declined to comment.

Thus, independent trusts will ultimately have the majority of votes, investment bankers who work with Rusal’s counterparties told Vedomosti. Most likely, the trustees will listen to the recommendations and decisions of an independent Board of Directors. Meanwhile, Deripaska has a blocking stake, and he can influence the course of major deals, which undoubtedly need the approval of all shareholders.

This is a groundbreaking sanctions case, when a person is excluded from the sanction list by agreement with the US Treasury. However, it does not mean a rollback in sanctions pressure from the United States, partner at Urus Advisory Alexey Panin told Vedomosti. "The story is very similar to the lab experiment. If the US Treasury regards it as successful, they can repeat the scheme with other industries, enterprises, and businessmen." But it cannot be considered a legal precedent," General Director of management company Sputnik Alexander Losev told the newspaper.

Kommersant: Germany earmarks 12 mln euro for projects commemorating Leningrad siege survivors

The allocation of 12 mln euro to help St. Petersburg shows that Germany is aware of its historical responsibility, the German government said on Monday, noting that this step is timed for the 75th anniversary of the lifting of the Siege of Leningrad. The money will be used to upgrade a hospital for war veterans and to create a German-Russian community center. The German Embassy told Kommersant that implementation of the project could begin as early as March 1.

The German Embassy in Russia told Kommersant that that project should "facilitate meetings between Russians and Germans, especially between the Germans and the victims of the Siege of Leningrad who are still alive."

The Russian-German DRB meeting center at St. Peter and Paul’s Lutheran Church, established in 1993, will become the main platform for the project. According to the fund’s Director Arina Nemkova, the German and Russian parties are currently coordinating an action plan. "For the new project, visits of young people from Germany are planned to meet with survivors of the Siege, to visit memorial sites, meet with historians," she said.

The German Foreign Ministry has designated the German Society for international Cooperation (GIZ GmbH) as the project operator. According to Head of GIZ Russian representative office Yulia Grishchenkova, the company will purchase equipment for the hospital and oversee its delivery. The entire process will be absolutely transparent, she said.